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Page 1: Frequently Asked Questions About Practice Group Leadership · Frequently Asked Questions About Practice Group Leadership ... Frequently Asked Questions About Practice Group Leadership

Frequently Asked Questions About Practice Group Leadership

by

Eric Seeger

Altman Weil, Inc.

Copyright © 2013, Altman Weil, Inc., Newtown Square, PA, USA

All rights for further publication or reproduction reserved.

Because law firms compete and deliver services primarily at the practice group level,

and because firm goals are commonly executed through the practice groups, it is

imperative to develop a well-functioning practice group structure with highly capable

leaders. Although this sounds reasonable – and reasonably easy to accomplish – it is

something that law firms of all sizes and practice types struggle with, from the

leadership selection process, to training, planning, evaluation and compensation.

In our work with law firm leaders, we are frequently asked questions like the following

about practice group leadership-

Managing Partner: How should we select new practice group leaders?

Altman Weil: Practice leaders should be selected primarily for their ability to do the job.

Consider criteria like demonstrated leadership and management skills as well as

relational, communication, delegation and lawyering skills. Willingness and enthusiasm

to do the job, firm-mindedness and a track record of getting things done are also

important selection factors. Don’t make the selection based on seniority, book of

business, underutilization or ego. Effective leadership is defined by results, not

attributes. Who will get the best results?

MP: What is the right way to view the job of the practice leader?

AW: The practice group leader can be seen as managing a business unit. It’s a real job

– one that requires time, attention and effort. You should provide each practice leader

with a written job description that sets forth the general responsibilities and

expectations. Groups should be focused externally on clients, strategy, competitiveness

and growth, not internally on administrative matters. You should try to reduce the group

leaders’ administrative burdens as much as possible because that is not the highest and

best use of their time. Ideally, priorities for your firm’s practice group leaders should be

jointly developed with firm management through a formal planning process.

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Frequently Asked Questions About Practice Group Leadership 2

MP: Some of our practice group leaders have no management or leadership

experience. How will they figure this out?

AW: It is not unusual for lawyers to have limited management experience or for new

practice leaders to protest that they didn’t go to law school to become managers. Some

may be fearful of failing, although they may not verbalize it that way. Firm management

should help equip them to do the job by providing them with a written job description,

clearly defined expectations, and initial and ongoing training. In addition, the practice

leaders should meet regularly as a group to discuss challenges and opportunities and to

share ideas, experience and best practices. The idea is that the firm wants and needs

the practice leaders to succeed and will make investments in developing their

leadership and management skills.

MP: If we can only have leadership ability OR management ability in a practice

leader, which one do we want?

AW: You are going to need both, and although the two are not mutually exclusive, you

don’t always get both in one person. You’re going to have some practice leaders who

are not natural leaders but can still get the job done. Others may be visionary leaders

who need a deputy or administrative support so they don’t get bogged down or turned

off by the details. Again, you will increase the leadership and management capability of

your practice leaders by providing regular training and opportunities for the group

leaders to talk to and learn from each other. The best firms have individual development

plans for each of their leaders, based on specific needs and goals.

MP: The practice leaders want to know how much time the job going to take.

What is reasonable to expect?

AW: Usually the answer is: more time than they think. Effective practice leadership

requires that the leader build high-trust relationships with each member of his or her

group, which takes time and commitment. Our research shows that the amount of time

spent by practice leaders in the role is the factor that correlates most strongly with

overall practice group effectiveness. The amount of time required by an individual

practice leader depends on the size, scope and “degree of difficulty” of the group, but in

general, the most effective practice leaders spend more than 250 hours a year on

leadership and management to execute the responsibilities on their job description,

achieve the goals in their group plan, and generate the kind of results you want to see.

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Frequently Asked Questions About Practice Group Leadership 3

MP: Our practice leaders don’t have 250 hours available. If they can’t do

everything, what are the most important priorities?

AW: The most important thing is to have a plan and work the plan. Each group’s plan

should identify two or three high-priority goals to be attained within a reasonable period

of time. It will also be a good idea for them to track and record their management time,

which will provide hard facts that allow you and them to assess where their

management time goes and how they can spend and invest their management time

most effectively. A collaborative review of their management time could be made a

regular part of their training and review. As management guru Peter Drucker observed,

efficiency is doing things right; effectiveness is doing the right things. The “right things”

should be set forth in their group plan and agreed to by management.

MP: How should we hold our practice leaders accountable for results in the role?

AW: It’s a real job, and important to the firm, so it’s important to measure and reward

results. The practice leaders should be evaluated annually based on effort (quantity and

quality of time spent) and especially results (progress against plan). They should expect

to be evaluated fairly and rewarded for achievement. Accountability runs both ways and

requires frequent “touches” between firm management and the practice leaders.

Management must be in regular, face to face communication with practice leaders, give

constructive feedback on practice group plans, help set priorities, make resources

available to achieve goals, and deliver specific performance feedback, including formal

evaluations not less than annually.

MP: The practice leaders are skeptical that they will really be rewarded (or at

least not penalized) for spending time on leadership and management,

rather than billing time. Billable hours have historically been closely linked

to compensation in our firm.

AW: There will always be a high level of natural skepticism – these are lawyers. Assure

them that management recognizes the trade-offs they are being asked to make, and

make clear that you are asking for a greater overall contribution. Each practice leader

will still be expected to maintain a vibrant practice and meet personal financial targets. If

they are doing their best as a practice leader, there will be upside rewards. If they are

not trying, or are trying but failing, their compensation will not suffer but they will be

replaced as practice leader. Some firms pay their practice leaders a stipend or give

credit for management hours as if those hours were billed and collected, up to a certain

number of hours. It is important for new practice leaders to understand that they are

going to work harder than their partners and will have to delegate management tasks to

keep from getting overwhelmed.

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Frequently Asked Questions About Practice Group Leadership 4

MP: Should practice leaders have input into individual compensation decisions

for the lawyers in their groups?

AW: The answer may differ from firm to firm. In general, practice leaders serve with the

authority of the Management Committee and report regularly to that body. By year two

of their leadership tenure, they should have input into compensation for the people in

their group. By year three, they should have significant knowledge and input into

compensation decisions. Again, these are guidelines – each firm’s history and

circumstances will factor into what can be accomplished and how quickly.

MP: We are looking at practice leadership as a training ground for firm

management. Is that appropriate?

AW: A practice leader does not have to be a candidate for a firm management role, but

certainly their performance is likely to qualify or disqualify them and is a good way to

identify leadership potential. The way we see it, your practice leaders are vitally

important to the overall success of the firm, whether or not they aspire to, or are suited

for, firm management. They are primarily responsible for the health, growth and

performance of their groups and while some of them may be developing the capability

to someday lead the firm, the primary goal is effective practice leadership right now.

MP: What other words of encouragement can you offer me as the leader of

these leaders?

AW: Find a way to get these “six P’s” across to your practice group leaders:

Patience: Be patient with yourself. You’ve never done this before, you won’t get it

exactly right, and that’s okay, as long as you are trying and learning and growing. It

takes time and experience to master anything new. We want you to take the job

seriously, but don’t be too hard on yourself. It’s a difficult assignment; allow yourself

time to figure it out and let us help you succeed.

Participation: Attend Practice Group Leader meetings as student, teacher and fellow

traveler. Strive to share and learn and improve. Stay in communication with firm

management and your fellow practice leaders. “All of us are smarter than any of us.”

Plan: It really helps to have a written plan for your group that you, we, and your

group members can keep in front of us. Let’s determine a short list of priorities for

your first year and make sure you have scheduled time to focus on them.

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Frequently Asked Questions About Practice Group Leadership 5

Push it out: Delegate! Use your colleagues and staff to help wherever possible.

Delegation is not getting others to do your job, it’s getting rid of everything that can

be done by somebody else. The fact that you have taken on extra responsibilities

does not mean you have to do everything yourself.

People: Don’t forget it’s about people – and dealing with people is time-consuming

and messy. Prepare to make a significant time investment in getting to know and

understand your people and assume it will take more time than you wish. And

finally-

Pom-poms: Management is behind you and wants you to succeed. Your group

members and partners want you to succeed as well, because your success is their

success. Fear not – you can do this.

These are probably not the only questions you will have on the subject of practice group

leadership, but they deal with issues that are typically encountered in forming new

groups and appointing new practice leaders. It is very important to provide role clarity,

make resources available, be clear how the practice leaders will be evaluated and

rewarded, provide training, ensure regular communication and recognize their

achievements. By keeping these things in mind, you should be able to make progress

toward realistic goals without getting stuck.

------------------------------------------

Eric Seeger is a principal with Altman Weil, Inc. He frequently conducts in-house

planning workshops with groups of practice leaders and is the co-author of Altman

Weil’s 2011 Practice Group Performance Survey. Contact him at 610-886-2000 or

[email protected].